Section 8 sent me $1100 extra..and wants me to refund tenant

Section 8 sent me $1100 extra..and wants me to refund tenant

Pat GoodyearPro Member
Syracuse, NY · Member since 2015 · 79 posts · 48 votes

I am in NYS. My section 8 tenant of 2 years. Not a ideal scenario..2 bedroom she frequently has her kids stay, her boyfriend, etc. Her share of the rent was $106/Mon. I raised the rent $100 to be in line with market. Sept I end up getting $1100 extra. I call section 8 and they said they recalculated and she shouldn't have paid $106 so they gave me $1100 for Oct thru Aug. I asked why they didn't send it to her, they said that's not how they do it. First its 2 tax years, second there is no paper trail. They don't care.

Have you ever dealt with this? Then they did her recert and she has another extra person listed. Yet I know zero about that.

In NY if it's an immediate family member I can't refuse to rent.

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  • Rental Property Investor · Prince George's County, MD · Member since 2022 · 177 posts · 187 votes
    4y
    Quote from @Pat Goodyear:

    I am in NYS. My section 8 tenant of 2 years. Not a ideal scenario..2 bedroom she frequently has her kids stay, her boyfriend, etc. Her share of the rent was $106/Mon. I raised the rent $100 to be in line with market. Sept I end up getting $1100 extra. I call section 8 and they said they recalculated and she shouldn't have paid $106 so they gave me $1100 for Oct thru Aug. I asked why they didn't send it to her, they said that's not how they do it. First its 2 tax years, second there is no paper trail. They don't care.

    Have you ever dealt with this? Then they did her recert and she has another extra person listed. Yet I know zero about that.

    In NY if it's an immediate family member I can't refuse to rent.

    Wow, sounds like NY's section 8 agency is pretty tacky.

    So she can move anyone in, claim they're immediate family, not notify you or specify additional tenants on the lease, and NY approves of this?

    Sounds like it's time to ditch section 8. 

  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Pat Goodyear:

    In my experience, Section 8 payments always go to the Landlord, not the renter. If the Tenant was paying more than her share, then Section 8 sends the refund to you and you send it to the renter.

    I don't know enough about NY (does anybody?) to speak to the rest, but maybe you need to interview some property managers to handle this property for you? Does Section 8 let them add roommates without your knowledge/permission? Does Section 8 let you increase the rent based on extra occupants? Can you terminate when this lease expires and find another renter? Are you at market rate? It seems you could use the help, particularly when it's such a regulated market.

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